Eli Lilly (NYSE: LLY) and Rigel Pharmaceuticals Inc (NASDAQ: RIGL) have announced a global exclusive license agreement and strategic collaboration to co-develop and commercialise Rigel's R552.
Lilly will pay an upfront cash payment to Rigel of $125 million. Rigel may also be eligible to receive up to $835 million in potential development, regulatory, and commercial milestone payments, as well as tiered royalties that will vary depending upon Rigel's clinical development investment.
Rigel’s R552 has completed Phase 1 clinical trials and will begin Phase 2 clinical trials in 2021 as part of the collaboration.
Lilly and Rigel will co-develop R552 at specified contribution levels, with Lilly responsible for global commercialisation costs and Rigel will have the right to commercialise R552 in the US.
“We are very excited to form this strategic partnership with Lilly. This collaboration will provide significant resources and expertise to support a broad investigation in multiple disease indications with our RIPK1 inhibitors,” said Raul Rodriguez, Rigel's president and CEO.
Rigel’s stock price is up 23.8% premarket, at $5.59 per share. Eli Lilly shares flat at $206.50 premarket.